A study on customer preference for Nescafe

coffee

Mayur G R
PES1PG22MB354
Department of MBA
PES University
Under the guidance of
VISRUTH VIDHADHAR PRASAD
Assistant professor
PES University

Abstract
In this research paper, the different variables which as an impact on preference of
customers for Nescafe coffee. The research was collected from public from Bengaluru.
The primary data was collected through a questionnaire. 89 responses were collected.
ANOVA and MULTIPLE LINEAR REGRESSION was used for the data analysis. For
Anova the coffee consumed in hot, moderate, cold was taken and found that there is no
impact of how the coffee is consumed on preference of customers. The MLR out shows
that the model is fit and some of the variables has the significant impact on the
dependent variable (I prefer to buy nescafe coffee).

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Introduction
The roasted and ground seeds of the tropical green plant known as coffee are used to
make coffee. Coffee, alongside tea and water, is one of the three most consumed drinks
internationally. Additionally, it is among the most lucrative global commodities.
Caffeine and chemicals in coffee are what give it its most important energy-boosting
properties. Cocoa arabica and C. canephara are the two types of coffee plants which
account for almost all of global production.

India is among the top 10 producers of coffee and will account for 3% of global output
in 2020. Coffee produced in India has high quality, hence its high premium in the
international market. The coffee market is valued at around 450 billion dollars. India
exports to more than 50 countries. Italy is the largest market for India's coffee beans.
Coffee production in India is largely done in the southern part of india. Karnataka has
the maximum share about 70% is produced. Kerala stands in the second place followed
by Tamil Nadu producing 23% and 6% respectively. According to FAO statistics india
is the 8th largest exporter of coffee. The exports in india fallows seasonality display. The
export is peak during the months march to June. In the financial year 2023 the exports
stood at 610 million us dollars.

Nescafe is a brand of instant coffee. Nescafe is a coffee brand from the Switzerland-
based company Nestle. It was first introduced in Switzerland in 1938. Until the late
1960s, Nestlé used the a company called N name on its products in the United States.
Following that, Nestlé presented Taster's Choice, a new brand in the US and Canada
that momentarily replaced Nescafé. GOLD mix COUPLE was the name of an
advertising campaign for television in the United Kingdom.

To know the preference of customers for Nescafe coffee powder, this research paper
helps. This research paper tries to explode the factors that affect customer preference for
Nescafe products and will try to explain which of the factors or variables has the
greatest impact on customer preference. In this paper, Anova and multiple linear
regression are used for data analysis.

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Literature review
1.
This study examined Coimbatore city's customer behaviour with regard to coffee
brands. The study's goals are to comprehend how brand experience, customer
happiness, and brand loyalty are related to one another. The aim of the study is to study
the connection between consumer experience, customer happiness, and brand loyalty. It
also aims to describe the relationship between company encounter and customer
happiness & brand loyalty, as well as the effect that brand experiences have on
customers. This analysis has identified four dimensions as internal factors: flavour
perception, sense of belonging, perceived significance, and brand awareness.
2.
this paper discusses the customer preference for coffee brands in Poland. The different
types were ground coffee, instant coffee , coffee beans and instant cappuccino. The
results of these research paper is found out to be the brand offered by small local
manufactures are having very low significance in the international market. 800 samples
were collected in this research.
3.
The study's findings demonstrated that brand preference is significantly influenced by
social networks, and indicates the relationship of brand preference and customer
behaviour is positively mediated by consumer consumption, with a statistically
significant effect. Proper marketing distribution of data on social media platforms
shapes how consumers act and their prompt approval of a company's products or
services. This study reveals the level of product awareness held by buyers as well as the
ways in which online advertising and the internet can establish a brand and shape
customer tastes.
4.
This study's primary goal is to determine how consumer satisfaction, perceived quality,
and purchase intention relate to brand loyalty for branded coffee powders in Madurai.
To determine the connection between perceived quality, purchase intention, customer
satisfaction, and brand loyalty, a review of the literature was gathered. A structured
questionnaire was used to conduct a survey with 365 respondents in order to gather
data. The convenient sampling strategy was used. Since instant coffee became popular,
less people are purchasing filtered coffee, and purchases are now typically made in
kilogrammes.
5. This study was carried out in Madurai. Here, they examined into the way consumer
satisfaction as well as intent to purchase affected brand loyalty to name-brand coffee granules.
30065 individuals submitted data for them to gather. They determined that over 70% of the
market had been compensated for by sunrise, Bru, and Narasus.
The also found that the above mentioned factors had a significant impact on the
customer loyalty towards a particular brand of coffee powder.

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Objectives of study

1. To identify if there is any difference in customer preference for different types of

coffee. 2. To study the impact of various variables on customer preference for buying
Nescafe coffee powder.

Research methodology
Primary research was conducted for this research. Primary data was collected with the
help of a questionnaire. The value of 89 was obtained. Respondents were from
Bengaluru. Many research articles were also referred to to know the different variables
that could impact customer preference towards Nescafe coffee. A Likert 5-point scale
was used to measure the data.

Questionnaire
1. How much does the flavour (or) variety of nescafe coffee influence your
preference to buy.
2. I look at the price of nescafe before purchasing
3. I look at the package design before purchasing nescafe coffee.
4. I look at the advertising of nescafe before buying nescafe coffee.
5. I look at others brands of coffee before buying nescafe coffee.
6. I look at health benefits while buying nescafe coffee.
7. I check the originality of the product before buying nescafe coffee.
8. I see the availability of nescafe coffee before buying.
9. I look at the price discounts/ offers/ cashbacks before buying nescafe
coffee.
10. I look for value for money while buying nescafe coffee.
11. I perfer to buy nescafe coffee.
The answers for these questions were collected on 5 point Likert scale.

Demographics details
1. Gender

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 2. Age Group

3. Education

Results and discussion

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 1. ONE WAY ANOVA
Descriptives
I perfer to buy nescafe coffee

From the significance value we can observe that the value is more than 0.05. which
specifies that the model is not significant.
So the result tells that there is no impact of customer preference on type of coffee consumed
(hot, moderate, cold).

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 2. MULTIPLE LINEAR REGRESSION
To study the impact of the variables on the customer preference, multiple linear regression
is done. Here the dependent variable is customer preference to buy.
Hypothesis
H0 – there is no significant impact of independent variables on the dependent variable.
H1 – there is a significant impact of some independent variables on the dependent variable.

Descriptive Statistics
Std.
Mean Deviation N
I perfer to buy nescafe 4.08 1.089 89
coffee
How much does the 3.65 .990 89
flavour (or) variety of
nescafe coffee influence
your preference to buy
I look at the price of 3.76 .930 89
nescafe before
purchasing

I look at the package 3.36 1.180 89

design before
purchasing nescafe
coffee

I look at the advertising 3.34 1.065 89

of nescafe before
buying nescafe coffee

I look at others brands of 3.70 1.102 89

coffee before buying
nescafe coffee
I look at health benefits 3.60 1.019 89
while buying nescafe
coffee

I check the originality of 3.79 1.017 89

the product before
buying nescafe coffee

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 I see the availability of 3.67 1.106 89
nescafe coffee before
buying

I look at the price 3.54 1.159 89

discounts/ offers/
cashbacks before buying
nescafe coffee

I look for value for 3.83 1.131 89

money while buying
nescafe coffee

Interpretation

From anova table we observe that the model is significant because. The significance
value is less than 0.05.

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 Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.140 .492 2.316 .023
How much does the flavour .660 .190 .600 3.479 .001
(or) variety of nescafe coffee
influence your preference to
buy

I look at the price of nescafe -.189 .195 -.161 -.965 .036

before purchasing
I look at the package design -.101 .099 .110 - .307
before purchasing nescafe 1.029
coffee
I look at the advertising of .007 .106 .007 .066 .948
nescafe before buying nescafe
coffee
I look at others brands of -.223 .124 -.225 - .076
coffee before buying 1.801
nescafe coffee
I look at health benefits while .115 .117 .107 .978 .331
buying nescafe coffee
I check the originality of the .064 .125 .060 .515 .608
product before buying nescafe
coffee
I see the availability of nescafe .068 .121 .069 .559 .578
coffee before buying
I look at the price discounts/ .085 .115 .090 .734 .465
offers/ cashbacks before
buying nescafe coffee
I look for value for money .306 .111 .318 2.771 .007
while buying nescafe coffee
a. Dependent Variable: I perfer to buy nescafe coffee

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Interpretation:
From the coefficient table,

The MLR equation is

Buying preference = 1.14 + 0.6 * Flavour – 1.16 * price + 0.11 * pack

design +0.318* value for money.

This means that if there is 1 unit increase in price of the coffee the buying preference of
the customers decreases by 1.16 times.
Constant 1.14 means if all the independent variables are zero the buying preference of
the customers remains 1.14.

Conclusion
The customer preference for nescafe coffee is the problem statement here the research is
conducted. The research is done using primary data collection. The data analysis is done
on the responses found that the model obtained is fit and hence can be generalised to the
population. The sample on which the model was run had 89 samples.

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References
1. A Comparative Study on The Consumer Preference between Nescafe and Bru Coffee Brands
with Reference to Coimbatore City Ms. Sindhu V a , Ms. Aarthi M b.
2. The Influence of Social Media and Brand Knowledge to The Relationship of Country of
Origin And Brand Preference Latysh Svitlana1 , Liu Zhi Chao2 (Department of Business and
Administration/South China University of Technology, China, Guangzhou1,2) Corresponding
Author: Latysh Svitlana.
3. A STUDY ON THE INFLUENCE OF PERCEIVED QUALITY, PURCHASE INTENTION
AND CUSTOMER SATISFACTION TOWARDS BRAND LOYALTY FOR BRANDED
COFFEE POWDERS (INSTANT) IN MADURAI P.S.Venkateswaran Department of
Management Studies, PSNA College of Engineering & Technology, Dindigul.
venkatespsna07@gmail.com B.Arun Department of Management Studies, PSNA College of
Engineering & Technology, Dindigul. S.Sakthivel Department of Management Studies,
PSNA College of Engineering & Technology, Dindigul Earnest Paul Department of
Management Studies, PSNA College of Engineering & Technology, Dindigul.
4. A Study on Customer Perception towards Nescafe Products with Special Reference to
Coimbatore City Evangeline Kiruba.J, Department of Management Deepthi Nivasini.K ,
Department of Commerce Assistant Professors Karpagam Academy of Higher Education
Coimbatore, Tamil Nadu, India evangelinejetson@gmail.com,deepthi199223@gmail.com.

5. Google form link

https://docs.google.com/forms/d/e/1FAIpQLSdBksQkI3E8FgjQlysxB9GvxYDGtfzvePXhG
a
O3b2Gwp-hiNg/viewform?usp=sf_link

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